Page 48 - Policy Economic Report - December 2025

POLICY AND ECONOMIC REPORT
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The Minister observed that indigenous platforms such as LCA Tejas, LCH Prachand, ATAGS, Akash missile
systems, radars, corvettes, armoured vehicles and drones are significantly enhancing the operational
readiness and combat capability of the Armed Forces. Operation Sindoor, executed on the strength of
indigenous equipment and systems, marked a milestone in India’s journey towards technological self-
reliance in drone warfare, layered air defence and electronic warfare, clearly demonstrating the
operational relevance of Atmanirbharta.

Shri Naik said that Mission Sudarshan Chakra, announced by Prime Minister Modi from the ramparts of
the Red Fort on Independence Day 2025, aims at neutralising enemy defence infiltrations and
strengthening India’s offensive and protective capabilities. Inspired by the legendary Sudarshan Chakra of
Shri Krishna, the mission symbolises speed, precision and decisive power, underscoring India’s
commitment to strategic autonomy and rapid, effective response. Under this mission, an expanded
nationwide security shield is envisaged, with enhanced protection of public spaces and critical areas by
2035, reflecting a long-term, self-reliant approach to national security.

He informed that defence Industrial Corridors in Uttar Pradesh and Tamil Nadu have together attracted
investments of over ?9,145 crore, with 289 MoUs signed, unlocking ?66,423 crore in potential
opportunities. The Defence Procurement Manual 2025, launched in October 2025, simplifies revenue
procurement of goods and services worth nearly ?1 lakh crore, enhancing transparency, uniformity and
participation of domestic industry. A comprehensive review of the Defence Acquisition Procedure 2020
has also been initiated to align procurement with national priorities, promote indigenous design and
facilitate technology infusion.

Talking about allocation in the Union Budget 2025–26, he informed that ?6.81 lakh crore has been allotted
to the Ministry of Defence. This includes ?1.80 lakh crore allocated for capital outlay, with 75% of the
modernisation budget earmarked for domestic procurement, providing strong and sustained demand for
Indian manufacturers. Innovations for Defence Excellence has emerged as a key enabler of defence
innovation by integrating start-ups, MSMEs and academia into the defence ecosystem, while DRDO
continues to drive innovation, supported by a ?500 crore corpus under the Technology Development Fund
and 15 Defence Industry–Academia Centres of Excellence. The restructuring of the Ordnance Factory
Board into seven DPSUs has further enhanced autonomy, efficiency and export orientation of legacy
defence manufacturing.

With over 16,000 MSMEs now part of the defence ecosystem, Atmanirbharta has become a broad-based
national endeavour. The Government has set a clear vision of achieving ?3 lakh crore defence production
and ?50,000 crore defence exports by 2029, positioning India as a global defence manufacturing hub.

While concluding, the Minister said that Atmanirbharta in defence today is not an aspiration; it is a
measurable and credible reality, reflected in rising production, expanding exports and proven operational
capability. As India advances towards becoming a global defence manufacturing hub, this journey will
continue to strengthen the Armed Forces, empower Indian industry and reinforce India’s position as a
confident, capable and reliable partner in the global security architecture.

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